August 6, 2010 / 4:32 PM / 8 years ago

UPDATE 1-Canada's Katanga Mining posts Q2 profit

* Q2 breakeven/shr vs loss $0.09/shr last year

* Total sales up 85 pct

Aug 6 (Reuters) - Katanga Mining Ltd (KAT.TO) posted a quarterly profit on Friday, helped by increased production and higher copper and cobalt prices.

For the second quarter, the company posted a net profit of $2 million, or breakeven per share, compared with a loss of $57.5 million, or 9 cents a share, a year ago.

Sales rose 85 percent to $115.2 million, the company said.

Copper revenue increased by $35.5 million, due to higher realized prices and increased production capacity.

The company said realized price for copper rose to $2.61 a pound, from $2.07 a pound last year, and copper cathodes sold increased to 14,465 tons from 10,478 tons last year.

Katanga shares were down 7 percent at 98 Canadian cents Friday afternoon on the Toronto Stock Exchange, mirroring a drop in copper prices.

Copper prices reversed earlier gains to fall almost 1 percent Friday. [ID:nLDE6750V5]

Katanga said cobalt revenue too increased by $15.5 million with a 60 percent increase in sales and a rise in realized prices.

The realized cobalt price rose to $16.73 a pound from $12.73 a pound last year, and sales rose to 801 tons from 500 tons. (Reporting by Isheeta Sanghi in Bangalore; Editing by Don Sebastian)

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